Energy Product Derivatives - Dominican Republic

The nominal value in the Energy Product Derivatives market is projected to reach US$72.53bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.25% resulting in a projected total amount of US$98.21bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.47 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 171.90k by 2029.

Definition:

The Energy Product Derivatives market refers to derivatives of energy products such as crude oil or coal. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of crude oil, an investor could own a derivative of crude oil). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular energy product derivatives are crude oil, coal, or natural gas.

Energy Product Derivatives, e.g. natural gas, crude oil

Physical energy products

The Energy Product Derivatives market in Dominican Republic is experiencing a notable shift in recent years. Customer preferences in the Dominican Republic are increasingly leaning towards energy product derivatives as investment options due to their potential for high returns and portfolio diversification.

Trends in the market indicate a growing interest from local investors in energy product derivatives, driven by the volatility in global energy markets and the desire to capitalize on price fluctuations. Local special circumstances, such as the country's heavy reliance on imported energy products and its vulnerability to external market conditions, are prompting investors to turn to derivatives as a way to hedge against price risks and secure their investments. Underlying macroeconomic factors, including fluctuations in global energy prices, government policies related to energy imports, and the overall economic stability of the country, are influencing the development of the Energy Product Derivatives market in the Dominican Republic.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.